10-Year Savings Projection

Long-term financial impact of SSEG bulk supply cost dilution (2026-2035)

Projection Basis: Full Deployment (Q3 2026 Target)

These 10-year projections assume full deployment by Q3 2026 of target PV and BESS infrastructure, including Virtual Wheeling revenue. Negative SSEG costs indicate the municipality is EARNING money.

PV Solar Capacity

137.61 MWp (full deployment target)

BESS Capacity

121.94 MWh (full deployment target)

Assumptions: Eskom tariff escalation at 10% p.a. | SSEG cost escalation at 6% p.a. (CPI+1%) | Virtual Wheeling rates escalating at 10% p.a. | Baseline Cost: R128.25M (2026) → R302.41M (2035)

R 3.76B

10-Year Cumulative Savings

R 650.4M

Year 10 Annual Savings

+278%

Savings Growth

215.1%

Year 10 Savings Rate

10-Year Projection: From Cost to Profit

Eskom baseline (10% escalation) vs SSEG system (negative cost = earning money)

Cumulative Savings Growth

Total accumulated savings over the 10-year period

Bulk Cost Dilution Trajectory

Percentage reduction vs Eskom-only scenario

Annual Savings Gap: Year-over-Year Growth

The widening gap between Eskom and SSEG costs creates exponentially growing savings

Escalation Rate Differential

The widening savings gap explained

Eskom Annual Escalation

Projected tariff increase rate

10%

SSEG Cost Escalation

CPI+1% contract rate

The 4% differential compounds annually. By Year 10, Eskom baseline costs reach R302.41M while SSEG generates R347.99M in revenue — a net income position.

From Cost to Profit

Municipality earning money from energy

Year 1 (2026)

Earning R43.7M | R 171.96M total savings

PROFIT

Year 5 (2030)

Earning R138.9M | R 326.71M total savings

PROFIT

Year 10 (2035)

Earning R348.0M | R 650.41M total savings

PROFIT

From Year 1, the municipality has negative electricity costs — the SSEG system generates more value than the baseline Eskom expense.

10-Year Cost Evolution: Eskom vs SSEG DER

Complete financial projection with annual and cumulative savings

Year	Eskom Cost	SSEG Cost	Annual Savings	Cumulative	Savings %
2026	R 128.25M	R -43.71M	R 171.96M	R 171.96M	134.1%
2027	R 141.08M	R -63.10M	R 204.18M	R 376.14M	144.7%
2028	R 155.18M	R -85.23M	R 240.41M	R 616.55M	154.9%
2029	R 170.70M	R -110.39M	R 281.09M	R 897.64M	164.7%
2030	R 187.77M	R -138.93M	R 326.71M	R 1224.35M	174.0%
2031	R 206.55M	R -171.26M	R 377.81M	R 1602.16M	182.9%
2032	R 227.21M	R -207.79M	R 435.00M	R 2037.16M	191.4%
2033	R 249.93M	R -249.03M	R 498.96M	R 2536.12M	199.6%
2034	R 274.92M	R -295.57M	R 570.49M	R 3106.61M	207.5%
2035	R 302.41M	R -347.99M	R 650.41M	R 3757.02M	215.1%
Total (10 Years)	R 2,044.0M	-R 1,713.0M	-	R 3.76B	183.9% avg